Heineken and Efes Breweries International have confirmed further details of their joint-venture in Serbia, and the closure of one of their breweries in the country.

The two brewers, who combined in Serbia in August, said today (17 October) that the entity will be known as United Serbian Breweries (USB), and will look to scale back its total production "to increase its competitiveness and produce sustainable financial results".

USB's brewery in Pancevo will be closed, while production at the company's remaining two breweries, in Zajecar and Novi Sad, will be scaled back from a total annual capacity of 2.1m hectolitres to 1.5m hectolitres.

"In-depth analysis of the company's assets revealed that the combined production capacities of USB's three breweries largely exceed its needs," Heineken and Efes said jointly. "In addition, the present technical conditions in Pancevo brewery would not make further investment in this facility economically viable.

"The company has therefore decided to concentrate future investments in Zajecar and Novi Sad breweries, and plans to invest approximately EUR50m (US$67m) over the next three years."

USB is subsequently looking to reduce its total workforce by around 200, with around 30 employees from Pancevo set to be relocated to other positions in the company. Proposed severance packages will be 30% higher than the best individual option, the company added.

Following the completion of the investment package, USB will look to "develop" its export business from Novi Sad, in co-operation with other companies within the Heineken group.

USB is 72% owned by Heineken and 28% by Efes. The company portfolio comprises of Heineken, EFES, Amstel, Kaiser, Weifert, Pils Plus, Zajecarsko, MB.